Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do you do part c??? I can give formulas if needed ' State Probability ' Stock A's return Stock B's return ' Boom 0.1

image text in transcribed

How do you do part c??? I can give formulas if needed

image text in transcribed
' State Probability ' Stock A's return Stock B's return ' Boom 0.1 15% 11% a. Referring to Table above, compute the expected rate of return for S tock B. State your answer as [\Q% percentage with four digits after the decimal point. Denote negative returns with '-'sign. (ANS\@) 7.8000%) Q b. Referring to Table above, compute the standard deviation of return for Stock A. Stag' answer as a percentage with four digits after the decimal point. (ANSWER 3.201696) $9 c. Referring to Table above, compute the correlation coefficient between the $95 of the two assets. State your answer with six digits after the decimal point. Use '-' to denote ive correlation. (ANSWER -0.545279) 8" 0'. Referring to Table above, compute the expected return of a p 36 with 30% in StockA and 70% in Stock B. State your answer as a percentage with four digits @e decimal point. Denote negative returns with '-'sign. (ANSWER 8.910096) e. Referring to Table above, compute the standard &on of the return of a portfolio with 30% in StackA and 70% in Stock B. State your answer as a perc with four digits after the decimal point. (ANSWER 1.1068%) [$5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

1337671002, 978-1337395250

More Books

Students also viewed these Finance questions

Question

Defina en sus palabras el concepto "economa" como ciencia social?

Answered: 1 week ago